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Can anyone do the income statement please? Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product
Can anyone do the income statement please?
Morrisey & Brown, Ltd., of Sydney is a merchandising company that is the sole distributor of a product that is increasing in popularity among Australian consumers. The company's income statements for the three most recent months follow: Morrisey & Brown, Ltd. Income Statements For the Three Months Ended September 30 July 4,250 August 4,750 Sales in units $ 446,250 267,750 178,500 $ 498,750 299, 250 199,500 September 5,250 $ 551, 250 330, 750 220,500 Sales Cost of goods sold Gross margin Selling and administrative expenses: Advertising expense Shipping expense Salaries and commissions Insurance expense Depreciation expense Total selling and administrative expenses Net operating income 24,000 34,500 79,000 6,950 16,700 161,150 $ 17,350 24,000 36,700 85,100 6,950 16,700 169,450 $ 30,050 24,000 38,900 91,200 6,950 16,700 177,750 $ 42,750 By analyzing the data from the company's income statements, classify each of its expenses (including cost of goods sold) as either variable, fixed, or mixed. Classification Variable Expenses Cost of goods sold Advertising expense Shipping expense Salaries and commissions Fixed Mixed Mixed Fixed Insurance expense Depreciation expense Fixed Using the high-low method, separate each mixed expense into variable and fixed elements. Express the variable and fixed portions of each mixed expense in the form Y = a + bX. (Round the Variable cost per unit to 1 decimal place.) Variable Cost Fixed Cost Formula $ 4.4 per unit $ 15,800 Y = $ 15,800 + $ 4.4 X Shipping expense Salaries and commissions expense $ 12.2 per unit $ 27,150 Y = $ 27,150| + $ 12.2 x Redo the company's income statement at the 5,250-unit level of activity using the contribution format. Morrisey & Brown, Ltd. Income Statement For the Month Ended September 30 Variable expenses: 0 0 Fixed expenses: 0 $ 0Step by Step Solution
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